Like personal credit cards, business cards also offer loyalty, rewards and cashback. Many other facilities are available on the transaction.
The more transactions you do in business, the more you will get the benefit of reward points, loyalty and cashback. If you do small business then small business credit card can be beneficial for you. Small Business Credit Card A small business credit card is like a personal credit card and the work is also similar. Also Read: DGCA alert to passengers planning to travel abroad to check fares on airlines website DGCA Advice
The only difference between the two is that the Small Business Credit Card is solely used for the Business Owner, Entrepreneur and Freelancer whereas the Personal Credit Card can be used by any individual. Like personal credit cards, small business credit cards also attract interest. For small business credit card, one has to apply in the bank which is made in the name of the company. Apart from business, there are many other things in which small business credit card brings big benefits. Also Read: Now you will be able to buy pizza, ice cream and coffee with bitcoin in India, this company started a new service
1- Benefit of credit score
If you run a company, then credit history and credit score are very important. The more you use a small business credit card for business related expenses, the more your credit score will increase. For this, you have to keep paying the credit balance on time. The advantage of increasing the credit score in the name of the company can be taken in taking a loan. Increasing credit score will increase the confidence of your company and business. You can take advantage of this trust in dealing with interest rates while taking loans from banks. Also Read: Know how many people in India earn Rs 100 crore annually… and how many people are poor
2- There will be no shortage of cash
Small business or big, it needs a lot of cash to run it. The flow of cash in the company should always be maintained. By taking a small business credit card, more credit, credit or loan facility comes in your hands. This increases your cash flow. That is, when money is needed, you can take it with a credit card and invest it in business. Also Read: EPFO: Depositing money in EPF every month can get more than Rs 1.5 crore, know how
Credit cards can be used to purchase equipment, inventory and supplies. Taking a loan from a small business credit card is quite easy and it is available faster than a small business loan. For this, you have to give at least paper and it is also approved in a few days. Also Read:LPG Cylinder New Connection: Give a missed call and get a new LPG connection, know what is the whole process?
3-Ease of getting a large credit limit
Business credit cards have higher limits than personal credit cards. Due to the high credit limit, more and more purchases can be done for the business. If the credit limit is not high, then always cash will have to be kept so that there is no problem in the purchase of goods for the company.
4- Ease of handling expenses
Small business credit card provides convenience in spending only and only for company and business. If you mix your own expenses in the expenses of the business itself, then the work of the company can be affected. With a business card, you can spend only for the company and you can have a personal card for your own expenses. This will determine the scope of both types of expenditure and there will be no confusion in the expenditure.
5-Benefit of rewards and cashback
Like personal credit cards, business cards also offer loyalty, rewards and cashback. Many other facilities are available on the transaction. The more transactions you do in business, the more you will get the benefit of reward points, loyalty and cashback. Suppose you have taken a business credit card on which you get travel points.
You have to move here and there in connection with business. If you spend it with a business card, then the point will be added and in the end you can redeem it. It may also happen that your hotel expenses or flight fare may be completely waived at one go. This will reduce your business travel expenses.
6-Employees benefit from business card
If your employees spend on purchases, inventory or supplies for your business, then you can also get a business credit card made for them. This will be beneficial for both the employee and the company.
With this you can also monitor the expenses of the employees. There will be no disturbance in the expenses for the company. The card will know how much the employees are spending on which item. You can also set the limit of the business credit card of the employees. This will avoid wasteful expenditure.
7- Ease of expense management
Business credit card will make it easier to manage the expenses of the company. How much is spent every month, its account can be easily found. Cash flow will be less. To know about the expenses, you can see the credit card statement every month. You can download the mobile app to make the business card more convenient. This will make it easier to keep track of expenses etc. If there is a complete record of expenses, then there will be facility in filing ITR, filing GST.
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